The European Parliament has called for substantial additional funding for the European Union’s eastern border regions, proposing that up to 10 per cent of the budgets of relevant EU financing instruments be earmarked for areas affected by Russia’s war against Ukraine and growing security threats.

The resolution, adopted on Thursday, 22nd October, received 414 votes in favour, 79 against and 90 abstentions.

It seeks greater financial assistance for regions bordering Russia, Belarus, Ukraine and Moldova, as well as territories along the Black Sea, under the EU’s 2028–2034 financial framework.

The proposals include higher EU contributions towards infrastructure projects, additional investment in local economies and targeted assistance for communities experiencing declining investment, population losses and increased security costs.

However, the resolution is not binding legislation and does not itself allocate new funding. Its provisions must be incorporated into future budget agreements and individual EU spending programmes.

Eastern regions face economic and security pressures

Russia’s full-scale invasion of Ukraine has significantly changed economic conditions across the EU’s eastern frontier.

Border restrictions, disrupted trade routes, increased defence activity and uncertainty over regional security have affected investment and commercial activity.

The pressures are particularly apparent in Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, Romania and Bulgaria.

According to a European Parliament research briefing published in September, these regions face overlapping challenges involving economic decline, depopulation, inadequate infrastructure and higher expenditure on security.

Some communities previously depended on cross-border trade with Russia or Belarus, much of which has declined sharply following sanctions and restrictions introduced since 2022.

Other regions have experienced increased transport demand linked to Ukrainian refugees, military logistics and the movement of goods towards Ukraine.

The European Commission has recognised that conventional regional development programmes may not adequately address the combination of economic and security pressures.

Parliament proposes dedicated financial allocations

The resolution calls for up to 10 per cent of funding within relevant EU instruments to be earmarked for eligible eastern border regions.

This does not mean that 10 per cent of the entire EU budget would automatically be transferred to those areas.

Instead, Parliament wants targeted allocations within programmes covering regional development, agricultural policy, transport, industrial competitiveness and infrastructure.

MEPs also propose significantly higher EU contributions towards eligible projects.

Under the parliamentary position, certain projects could receive up to 95 per cent EU co-financing, reducing the amount that national or local authorities would have to contribute.

Projects connected with security, resilience or critical infrastructure could potentially receive funding covering 100 per cent of eligible costs.

Additional pre-financing would help local administrations begin projects without having to provide substantial initial expenditure.

The proposals are particularly relevant to municipalities with limited budgets and regions where private investment has declined.

Wider definition includes Moldova and Black Sea regions

Parliament has also proposed broadening the geographical criteria used to identify eligible territories.

The resolution covers regions bordering Russia, Belarus, Ukraine and Moldova, as well as regions with access to the Black Sea.

The proposed framework would use the EU’s NUTS 2 regional statistical classification.

For borders with Russia and Belarus, the parliamentary proposal includes geographical thresholds concerning the length of land or maritime frontiers.

For Romania, the revised approach could extend support to regions connected with Moldova, Ukraine and the Black Sea.

The proposals would also have implications for transport corridors linking Ukraine with the EU, including railways, ports, roads and border-crossing facilities.

Such infrastructure serves both civilian trade and military mobility requirements.

Existing programmes and new investment plans

The Commission has already introduced measures intended to support Europe’s eastern regions.

Its February 2026 strategy identified security, economic growth, connectivity, local industries and demographic resilience as principal areas requiring action.

A proposed investment initiative, EastInvest, is intended to facilitate financing through European and national financial institutions, with the potential to mobilise up to €28 billion by the end of 2027.

This would principally involve lending and investment support, rather than direct grants equivalent to the total facility value.

The Commission has also identified approximately €5.6 billion in cohesion funding redirected towards eastern border regions under the current financial framework.

Those reallocations form part of approximately €34.6 billion redirected towards new priorities across participating member states.

Parliament’s latest demands concern the period after 2027 and would operate separately from these existing arrangements.

Budget negotiations will determine the outcome

The proposal places additional pressure on governments negotiating the EU’s next long-term budget.

Agricultural policy, regional development and industrial investment are already competing for funding alongside increased European defence expenditure.

As EU Today reported in its coverage of the agricultural budget negotiations, member states remain divided over the allocation of resources under the next financial framework.

Eastern border governments are likely to argue that infrastructure and economic development in their territories contribute directly to the EU’s wider security.

Other member states may resist dedicated allocations if these require reductions in existing regional development programmes elsewhere.

Parliament has proposed that additional assistance should not come at the expense of support for other less-developed regions.

The negotiations will determine whether that position is financially achievable.

The next stage will involve discussions over the overall EU budget and the individual programmes through which eastern border assistance could be delivered.

For now, Thursday’s vote establishes Parliament’s demand for a larger and more clearly defined financial commitment to Europe’s eastern frontier, without creating an immediate entitlement to additional EU funding.

Main Image: Denis LOMME: © European Union 2023

European regional and local leaders have warned that the EU’s next long-term budget risks transferring control over investment programmes to national governments, potentially increasing economic disparities and reducing the ability of poorer regions to shape their own development.

The warning was delivered in Brussels on 12 October by Kata Tüttő, President of the European Committee of the Regions, during the opening of the European Week of Regions and Cities.

Her intervention comes as EU leaders prepare to negotiate the 2028–2034 budget, with disagreements over agricultural funding, regional development, defence, industrial competitiveness and the distribution of financial responsibilities among member states.

The Committee of the Regions warned that greater centralisation could concentrate economic opportunities in already prosperous areas while limiting other territories’ capacity to attract investment and develop essential infrastructure.

The concern goes beyond money allocated to regional development. It addresses who controls spending decisions and whether local authorities retain a meaningful role in determining how European funds are used.

Regional governments resist centralisation

EU cohesion policy has traditionally sought to reduce disparities between richer and poorer regions through investment in transport, infrastructure, education, business development and public services. While national governments administer considerable funds, regional and local authorities are frequently involved in identifying priorities and delivering projects.

The Committee argues that restructuring which concentrates decision-making at national level could weaken this arrangement. National governments may favour country-wide industrial or infrastructure programmes, while regional authorities identify specific problems arising from local conditions.

A national infrastructure strategy could prioritise major transport routes and industrial centres. Regional administrations might instead emphasise connecting smaller communities, maintaining local services or developing specialised economic activities.

The dispute concerns whether the next EU budget will maintain flexibility for regional priorities. In Belgium, Germany, Spain and Italy, regional institutions possess important responsibilities across economic development, education and infrastructure. Changes to EU spending governance could alter established relations between European, national and regional institutions.

The budget negotiations intensify the dispute

Ireland’s rotating Council presidency has proposed reducing the Commission’s original seven-year budget plans by approximately €141 billion while largely protecting agriculture and cohesion compared with other expenditure categories.

The proposed financial framework would nevertheless remain substantially larger than the current budget. The distribution of resources remains contentious, and an overall cut does not necessarily translate into the same reduction for every region.

Effects will depend on allocation formulas, national spending plans and programme governance. Meanwhile, European institutions face demands for stronger investment in defence production, digital infrastructure, competitiveness and support for Ukraine while maintaining agricultural and regional commitments.

Economic disparities remain a European problem

The Committee presented its seventh annual assessment of Europe’s regions and cities during the European Week of Regions and Cities, held in Brussels from 12 to 14 October.

The assessment examines competitiveness, resilience, public services, democratic governance and financial conditions. Regional disparities remain a significant feature of the EU economy despite decades of common investment programmes.

Large metropolitan areas often benefit from concentrations of universities, research institutions, advanced industries and capital. Less densely populated territories may struggle with demographic decline, shortages of skilled workers and the cost of maintaining infrastructure.

These differences can reinforce themselves over time. Businesses invest where suitable workers, transport networks and customers are already concentrated. Younger workers moving towards metropolitan economies may further reduce the economic prospects of communities they leave behind.

Defence spending creates new pressures

The increase in European defence expenditure introduces another dimension. Regions containing defence manufacturers, engineering firms, research institutions and military installations could benefit substantially from new spending, while others may receive little direct economic advantage.

If industrial investment concentrates in already advanced manufacturing centres, geographical disparities could widen. Conversely, procurement programmes and infrastructure investment could bring opportunities to weaker regional economies with suitable facilities and labour.

A question of political authority

The Committee of the Regions has limited formal authority over the EU’s long-term budget. National governments will negotiate the framework, and the European Parliament must consent to the final agreement.

Regional leaders are seeking to influence those negotiations before political compromises are established. Their central argument is that aggregate European economic growth alone does not capture the distribution of investment, employment and public services across the Union.

The approaching European Council negotiations will indicate whether governments intend to preserve regional influence over EU spending or concentrate greater authority over investment decisions at national level.